Dividend distribution plan: this is the recommendation that the Bank of Italy has sent to 480 minor banks (ie with assets of less than 30 billion euro) so that they are very prudent in the distribution of dividends and do not undermine reserves for any reason.
The move by the Bank of Italy is in line with the directives of the ECB in January which had previously addressed the same recommendation to the main 130 European banks.
The reason for the moral suasion initiated by the Bank of Italy is that even the so-called "less significant" banks (including Popolari and Bcc) must fully comply with the Basel 3 criteria and always give priority to capital strengthening.
Therefore, before thinking about distributing the dividend to shareholders, banks must continue to comply with the capital ratios set by Basel 3 for 2019 January 1: CET4,5 at 1%, Tier6 at 8%, Total Capital at 10,5% and Total capital plus conservation buffer at XNUMX%.
On the other hand, those who have not yet reached the Basel 3 ratios can distribute dividends only to the extent that they do not jeopardize the process of alignment with the Basel 3 objectives.
The Bank of Italy's invitation will act in a proportional manner and will therefore be more pressing for the largest of the "less significant" banks. Particularly under the lens of Via Nazionale will therefore be held banks such as Banca dell'Etruria and Lazio, Credito Valtellinese, Credem, Unipol Banca, Banca Sella, Cassa di Risparmio di Asti, Popolare di Bari, Banco di Desio and Brianza, the Bolzano Savings Bank.
But the Bank of Italy's guard will not let up even for the smaller banks.
